Clarification of the importance of the Central Bank’s decision to ban the sale of real estate above 100 million dinars
Clarification of the importance of the Central Bank’s decision to ban the sale of real estate above 100 million dinars
2025-01-17
Thursday (January 16, 2025), the expert in economic and financial affairs, Nawar Al-Saadi, commented on the repercussions and importance of the Central Bank’s decision to prohibit the sale of any property worth more than 100 million dinars except through banks.
Al-Saadi said in a press interview that “the decision of the Central Bank of Iraq not to allow the sale of real estate exceeding 100 million dinars except through banks represents an important step towards regulating the real estate market in Iraq, and it reflects a growing interest in combating corruption and money laundering, which are two of the biggest challenges facing the Iraqi economy at the present time.”
“The decision aims primarily to ensure that all large real estate transactions are documented within the formal banking system. This procedure contributes to creating a transparent environment through which regulatory authorities can track the source of funds used to purchase real estate, which reduces the possibility of these transactions being used as a cover for money laundering or financing illegal activities. The real estate market in Iraq was sometimes chaotic, as there were many financial transactions taking place outside the official framework, which made it difficult for the relevant authorities to monitor these activities and ensure their integrity,” he explained.
“In addition, this decision is a necessary step to combat corruption in the real estate sector, as large real estate transactions were in some cases carried out without adequate supervision, which opened the door to many illegal practices. By requiring parties involved in such transactions to go through banks, the decision ensures that the source of funds and the mechanism for their transfer are scrutinized, which will contribute to reducing financial corruption that affects the reputation of the real estate sector and the economy in general,” he added.
Al-Saadi added, “On the other hand, despite the potential benefits of this decision in reducing corruption, it may face challenges in actual implementation. For example, some sellers and buyers may seek to circumvent these rules by resorting to informal methods of financing, which requires strong oversight from the relevant authorities to ensure the effective implementation of the decision. However, overall, this decision remains a positive step towards regulating the market and achieving economic stability.”
The expert in economic and financial affairs concluded by saying, “Given the Iraqi economy, which suffers from complex economic impacts, such policies are necessary to provide a more stable and transparent economic environment. If these policies are implemented correctly, they can contribute to restoring confidence in the financial system and enhance opportunities for sustainable economic development in Iraq.”
Yesterday, the Central Bank of Iraq issued a decision to ban the sale of real estate above 100 million dinars.
The bank stated in a document that it “sent an official letter to the Real Estate Registration Department prohibiting the sale of real estate whose value exceeds 100 million dinars in accordance with the new mechanism and instructions.”
The Central Bank explained that “the property is only sold through Iraqi banks to prevent money laundering.”
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